Flywire 2025 Q1 Earnings Narrows Losses by 33.1%

Flywire (FLYW) reported its fiscal 2025 Q1 earnings on May 07th, 2025. Flywire exceeded expectations with a notable improvement in net income. The company also raised its guidance, anticipating FX-Neutral Revenue Less Ancillary Services growth of 17-23% year-over-year. This upward revision reflects confidence in the ongoing strategic initiatives and client acquisitions, especially in the Travel and Education sectors. Flywire's robust performance and effective cost management highlight its resilience amid macroeconomic challenges. The company aims to optimize business investments for long-term success while maintaining low client churn and high client value.

Revenue

The total revenue of Flywire increased by 17.0% to $133.45 million in 2025 Q1, up from $114.10 million in 2024 Q1.

Earnings/Net Income

Flywire narrowed losses to $0.03 per share in 2025 Q1 from a loss of $0.05 per share in 2024 Q1 (40.0% improvement). Meanwhile, the company successfully narrowed its net loss to $-4.16 million in 2025 Q1, reducing losses by 33.1% compared to the $-6.22 million net loss reported in 2024 Q1. The EPS improvement reflects Flywire's effective cost management and strategic focus.

Price Action

The stock price of Flywire has jumped 10.44% during the latest trading day, has surged 15.83% during the most recent full trading week, and has surged 19.78% month-to-date.

Post-Earnings Price Action Review

Over the past five years, the strategy of buying Flywire (FLYW) shares after a revenue increase quarter-over-quarter and holding for 30 days yielded a 2.49% return, underperforming the benchmark by 25.98%. The strategy's Sharpe ratio was low at 0.06, indicating poor risk-adjusted returns. A maximum drawdown of -20.49% highlighted its high risk, making it less suitable for risk-averse investors. Despite recent positive price action, historical performance suggests caution for investors relying solely on short-term gains after earnings releases. This approach demonstrates volatility and risk, necessitating a careful evaluation of broader market conditions and long-term company potential.

CEO Commentary

"We are pleased with our 2025 first quarter results," said Mike Massaro, CEO of Flywire. The company signed over 200 new clients, primarily in the Travel and Education verticals, and exceeded expectations for FX Neutral Revenue and Adjusted EBITDA margins. Massaro highlighted the strong performance of the core business, characterized by low client churn and high client value. He emphasized ongoing strategic and operational decisions aimed at supporting clients and enhancing long-term success while optimizing business investments.

Guidance

Flywire anticipates FX-Neutral Revenue Less Ancillary Services growth of 17-23% year-over-year for fiscal year 2025, with a growth rate of 10-14% when excluding Sertifi. The company expects Sertifi to contribute $35-40 million in revenue, alongside Adjusted EBITDA margin growth of 100-300 basis points year-over-year. For the second quarter of 2025, the company projects similar FX-Neutral Revenue growth of 17-23%, with a Sertifi revenue contribution of $10-12 million and Adjusted EBITDA margin growth of 150-350 basis points.

Additional News

In recent weeks, Flywire has been actively expanding its strategic partnerships and executive leadership. On April 30, 2025, Flywire announced a strategic partnership with Avanse Financial Services to digitize student loan disbursements from India, further expanding its footprint in the education sector. Earlier, on March 13, 2025, Flywire appointed Mohit Kansal as Chief Payments Officer to accelerate product and payment innovation, strengthening its focus on payment innovation and network expansion. Additionally, Flywire deepened its collaboration with Ellucian on April 8, 2025, deploying software and payment solutions globally, enhancing its service offerings through integrations via Ellucian Ethos.